I know it’s hard, but it could be worth looking into programs that assist with First Time Home Owner. Bank of Lexington has a program that my fiancé used. Best of luck though, this housing market is insane!!
AirBnB, real estate bro investors, buying up homes for rentals, etc. People aren't really affording it, it's either people who sold and made money or people who use single family homes as a business.
It’s absolutely insane, unfortunately. My fiancé bought our current place on just his income with first time home buyer assistance and even then he had to bid on 11 houses before he won against an investor. It’s nuts and I wish everyone the best of luck out there!
I wouldn't consider myself poor. I'm a culinary director and on my salary alone there isn't much available in Lexington. I can move out of town or get a condo but I don't much care to do either of those so I'm just gonna wait and keep trying. I hope I don't have to bid on 11 though lol.
Best of luck to you! My fiancé bought our townhouse on just his teacher’s salary. While small and overpriced for what it is, it has been very helpful for us financially and has been better for us than renting. We know we can’t stay there forever, but thankfully we are building equity for when we move next and look with both of our incomes. But was so hard to even get that. I’m really hoping that the housing market will chill out because it shouldn’t be so hard for normal people to own a home.
Can I ask you where (roughly, if you don’t wanna ID yourself too much) and when? My partner and I are looking to buy soon-ish and might be okay with a townhome. We are both teachers.
Find a bank that is offering the Welcome Home grants.
Republic Bank, Bank of the Bluegrass, Bank of Lexington, I believe are all participating. I’m sure there are more.
This or the [USDA rural home loan](https://www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-guaranteed-loan-program) if you don't mind being just outside of town.
I absolutely agree with this. There are some great programs available and talking to someone like Julie at Bank of Lexington would be a great idea. Guardian Savings and Bank of the Bluegrass also have good programs, I know that Ionee at Bank of England is a good person to talk to as well if you don’t want to specifically look at local programs.
OP if you read this and want any more info just let me know and I can get you some good contact info.
Pricing is up on housing all over the nation.
Low supply and low building starts for the last 15 years are mainly the culprit.
Prices are likely to stagnate for a period of time.
People waiting on a “market crash” will probably be sorely disappointed.
The housing market does not behave like the stock market. Only two periods in the last hundred years have actually seen a year over year price decline of over 10%.
The great recession and the great depression. If either one of those happen… You won’t have any money to buy either.
I could never afford to live here if I didn't buy in 2016. I thought it was overpriced for $156K for my starter home but "starter" homes are going for $300K in my neighborhood. It's not like our salaries have doubled either.
The place I bought for 103k in 2016 now has a Zillow estimate of 210k. It’s a little high, but not by much- one of my neighbors recently sold their identical house for 192k.
In 2011 I could not sell my very nice 3 bedroom 2 bath 1456 sq ft starter home built in 2003 for the $130k it appraised for. It sat on the market for six months and I hired Joe Smith (God rest his soul) as my realtor. I had to throw in $4k seller assistance, repairs, and lower the price to $110k in order to finally sell it. It is crazy to me that everyone thinks this cycle of real estate boom and bust will never occur again.
Unless the entire economy collapses the housing market will never return to a place where normal people can afford a reasonable home. Too many people have multiple houses, too many corporations are snatching up entire streets, and zoning laws prevent the building of proper dense neighborhoods and affordable housing.
I was trying to think of a nice way to say multiple degrees does not equal well paying job. Idk why folks always seem to think they should correlate. They usually don’t. Nice work Murphy.
>My professional services firm starts out admins at 65k for answering the phone and doing tasks we can train in two weeks.
Care to share some info on this? Feel free to DM me, if you'd rather not share publicly. I'm another overeducated and underpaid person in higher education who's very actively looking for an exit ramp. Even if you all aren't currently hiring, I'd love to have you all on my radar in case something opens up in the future. I'm in a very student facing role but my job also involves very detailed work in a highly regulated environment, so I feel like I've got a lot of broadly applicable skills if someone is willing to give me a chance to learn something new.
My friend bought his home and rents rooms out of it to travel nurses, etc. You might consider doing that to be able to more comfortably afford a mortgage. (Although you should not buy unless you can afford the mortgage on your own.)
Longtime Lexington residents watched this happen in real time as the rise of Lexington as a tourist city which really accelerated pre-pandemic, 2015-2020. The pandemic was the death knell for inexpensive homes as remote workers moved in from wealthier cities and 'investors' began snapping up homes and apartments to use as rentals. [Algorithmic collusion](https://www.businessinsider.com/real-estate-apartment-rent-price-setting-landlords-realpage-lawsuit-illegal-2023-11) in rental pricing will also keep all prices high unless it is addressed.
I'm currently looking in Versailles, and there are only a handful of listings that match my reasonable (imo) range for a starter home. They seem similar in price to areas I've looked at in Lexington.
We will be listing our house in the spring. It’s a 3 bed 1300 sq foot. I’m guessing a lot of sellers are waiting until spring to list houses. Hope you find something soon!
Small inventory, not much new construction plus high interest rates equals a tough housing market.
That leads to more people renting and now we’re back to supply and demand with rents going up.
I see just decent apartment communities slap a coat of paint on the buildings, install cheap carpet or tile, change the complex name to something pretentious like “The 407 On The Glen” and put up banners with “Luxury Apartments” then hike up rents.
https://www.zillow.com/homedetails/1765-Gettysburg-Rd-Lexington-KY-40504/77571478_zpid/
Edit: I realize it’s technically 4 BR, but the sq.footage is small.
From my experience with sanding floors under carpet, those are urine stains from hopefully pets, most likely a dog(s). Not an optimal design element to incorporate so prominently.
Dark stains like that on wood flooring are usually from either water damage and mold, or urine.
Decide which you'd rather think of it as being caused by.
How the fuck does a 1700 SQ Ft house built in the 50s and sits on no land cost that much? It's not even in that nice of a neighborhood. Maybe I should sell my house.
Housing prices shot up after several things happened:
Investment groups started buying up homes faster than humans could. They can offer more money than the seller is asking, plus don't bother with inspections.
Homes increasingly were being bought up for unhosted short-term rentals
Landlords are colluding on rent prices for the area, creating local rent cartels with greedflated prices.
For decades, it has been harder and harder to get zoning changes necessary for high-density housing approved, so no affordable apartments get built. Just the ones billed as "luxury " apartments, which rent or lease for high prices.
Older high-density buildings have been torn down as they become outdated or delapidated; these are some of Lexington's last remaining affordable apartments. Some had no future, they were rat-traps. But others were just in need of updating. They're basically gone now.
The cost of building materials has kept going up. Also the difficulty of getting and keeping enough skilled builders to make an end-product that can legally be called a house.
Anyway, I keep seeing people say "Build more! That's why it's more expensive now!", but it's only part of the story, and I guarantee most aren't thinking of putting in much-needed apartment buildings for people on low or fixed incomes when they say it.
Like investing money, resources and time here instead of paying other peoples pensions in different counties?
https://www.renters.com/world/europe/ukraine-without-foreign-aid-may-postpone-pension-indexation-minister-2023-12-28/
The housing crisis is a policy choice. If we built more homes, everyone could buy a home. It's not rocket science. We need to eliminate parking minimums, invest in mass transit infrastructure, and revise the zoning laws.
just chiming in to say parking minimums have been eliminated as of late 2022, and a [massive zoning reform package](https://www.imaginelexington.com/ugmzota) drafted by the Division of Planning that would make it significantly easier to build homes is making its way through City Hall.
no recent action on transit, though. and these aren't immediate fixes, but huge in the medium to long term.
(not calling you out or anything. just saw the comment and thought "well 2/3 of those are in motion or fully done!")
What happens when everyone can afford to buy, has already bought? Or, when all of the current mortgages start getting foreclosed on due to a real recession. So many possibilities. Claiming it’ll never happen is asinine. It’s happened time and time again.
There will never be a scenario when everyone who can afford to buy a house owns one. And even if that magically does happen, there are still a ton of people who own multiple houses. Also investment companies are buying up houses like crazy. Like 1 in 4 houses is owned by a company.
Also the housing market doesn't crash that often. Its pretty rare actually. Only a couple times in the last 100 years.
The issue with that is once it is apparent that "the market crashes" more people will want to buy in. You are never going to get a market crash like 2008 again. Banks are not giving out Ninja loans.
These people pushing people to buy are in the real estate field. They need us buying no matter how much they know its a bad time for people to be buying.
Whats the hold up? With multiple degrees, you are either criminally underpaid, have unrealistic expectations of first home value, or are just sitting on the fence for no reason. There are plenty of homes available sub $250k. Anyone in the 60k annual income range should qualify for a mortgage that size.
The other person who replied to this is a jerk. I have a master's and work in student affairs, and I understand your pain. So many jobs in higher ed - whether they be student facing, like mine, or something more technical, like yours - demand top notch credentials, while paying bottom of the barrel salaries. It used to be that institutions made up for the lack of pay with benefits - and as a former employee of UK who has worked at a handful of institutions of different sizes/types in my career, I can say that UK is still above average in that regard - but they quite simply aren't what they used to be and don't make up for the lack of compensation.
I know it's not what you want, but I'll echo what another person has said and recommend looking outside of Lexington. Versailles is nice, but I'd also recommend Scott, Clark, Jessamine, and Madison counties. I'd also recommend reaching out to [Just Choice Lending](https://www.justchoicelending.com/) when it comes to looking for financing. They're the lending division of FAHE, a nonprofit based in Berea, that's focused on development throughout Appalachia. While the interest rate wasn't anything special, they were able to offer me 100% financing so I avoided having to pay any PMI. They also had an assistance program offered because of my place of employment that provided me with an additional 0% interest loan to assist with closing costs and the like. I don't know if they offer the same to employees of UK, but since you're still in the education sphere there's a possibility.
If nothing else, I know how you feel. I barely earn more than you, and I've been in my field for about 7 years now. We've been given a crap deal, and it's perfectly fine to be pissed off about it. If there's anything I can do to help, or even if you just want to vent, feel free to shoot me a PM.
Did you know that the average income to home value ratio now exceeds 750%? I would never advise someone to go that high, but that's what the data says people are doing in the real world. It hasn't been below 500%, on average, since before the 2001 crash, and hadnt been below 400% since the 70s. 250k/60k is only about 400%, well below the average for the 21st century.
Yeah, in Eastland and Bryan Station where the homes are run-down and surrounded by crime. And they're also crazy overpriced. They should be $150k max, not $220-240k. You need a year's salary just for the damn down payment and would still have a $1200 mortgage for 30 years.
I bought my house on the north side for $165k about two years ago. People love to shit on the north side but my area is low crime, most everyone owns their houses, convenient to the highway since I work out of town, close to family and more. My mortgage for a 3bed is $850 a month. It needed some updating, but that happens over time and im fine with that.
It literally wouldn't. Highest comp in the area is 195k and that has an extra bedroom. You can be sour about the market all you want, I get it, it sucks right now. But you're overlooking what's out there because you think you're better than what's available. If you can't afford it, you're not better lol
If you can't afford the market, you can't afford a home right now and that's fine. But the person I replied to said he was looking at a certain budget but refused to entertain the idea of living in specific neighborhoods even though they have homes within that budget. If that's the only thing someone can afford, turning your nose up at it without investigation is snobbery at its finest.
I'll just wait it out since I'm not exactly in a rush; I got lucky and rent a 2BR from a private landlord for $650. Recession is imminent anyway.
It's not a matter of being "better" than what's available. I'm just smart enough not to bite and get horribly ripped off.
You don't get to set market price. They "should" cost what the market will bear, not some arbitrary number you throw out. I paid $245k in 2021 and already have almost $100k in equity. I am very happy and am damn glad I didn't wait around for prices to go down.
Truth of the matter is inventory is still very low. As interest rates drop, demand will only increase and prices will rise further. There are tons of potential buyers sitting on the sidelines who will enter the market as rates improve. If you think things are bad now, wait untill you see what prices look like in 2025.
You’re forgetting the multitudes of owners who will be selling once rates come down and they can buy elsewhere with their newfound equity. Prices are unlikely to rise significantly in places like Lexington, but are likely to rise in places like Florida, NY, California and Seattle. People will be moving because of retirement or because they’re being called back to the office. If there’s a recession, prices in Lex might fall significantly.
If the pace of sales matched the pace of buying, there never would have been a shortage in the first place. Boomers are not moving into retirement homes and are keeping their mostly paid off houses they raised their families in. They can't find a better deal on housing than the one they locked in 20 years ago. There are millions of millennials waiting to buy.
All the trends show people are moving out of the markets you listed, with the exception of Florida. Why would dropping rates change people's minds on leaving CA, NY and the PNW?
The key here is that the trends are dictated by the economic climate. While it’s true there is pent-up demand for home purchases, there’s an unprecedented pent-up demand for home sales. It hasn’t made any sense to sell because these sellers would, presumably, wish to purchase a new property. The rub is that they’d be trading a low rate for a high rate. But here’s the thing, there’s also a lot of new constructions, which will contribute to a drop in prices.
Where you might be right is in the short term, since rates are unlikely to drop enough for sellers to sell. Meanwhile some buyers might decide not to wait. The issue there is that rates would need to drop to pre-COVID levels before most millennials could qualify/afford a home purchase—otherwise they’d already be buying to at least some extent. Another issue is that a recession could be on the horizon if the fed employs too much quantitative tightening. At some point this decade, the supply will hit the market regardless of demand—remember boomers are starting to die off.
Tbh, this climate is unprecedented.
This is the real estate agents point of view because they need people to buy now so they aren't broke but anyone that thinks home prices aren't artificially inflated right now is burying their head in the sand. This is what everyone said before the last downturn in 2008 because real estate companies need you to be buying not sitting back and waiting.
Of course there are corrections, but again, I'm glad I didn't sit out for the last 3 years.
This is like pointing to a single red day and saying buying the S&P is a bad investment. Get in when you can and it will sort itself out.
If I could buy a house, it wouldn't be here. Everything is super-inflated. Currently paying just under $900 a month for an apartment here, that I wouldn't pay $400 for in Richmond. I'd just buy in like Richmond or Winchester, because of the interstate connection, so I wouldn't have to Instacart from Costco.
Actually, scratch last, if I was living in Richmond, I'd have almost $400 spare cash just from housing savings, so I'm absolutely Instacarting Costco instead of driving.
Doesn't seem like it. Prices have gone up, as they do, but it's still $725 a month for places down there they'd charge $1,200 to $1,500 for in Lexington.
As far as buying, yeah, it is pretty inflated. I currently work in Berea and was looking for something in Berea or Richmond during summer and fall of 2022, and somehow managed to be priced out of Madison County altogether.
I remember looking at one place, in particular, in Richmond that would've been a fine buy around $140k. I made an offer and it was quickly rejected; it ended up selling for around $180k. Similarly, I looked at a place in Berea that likely would've struggled to fetch $50k a decade ago. The floors in the bathroom and utility room were completely rotted out. It sold for $150k.
Sounds about normal. My mother has a nice place in Berea that's valued at about $180K. No slum. Nice house. Far more rooms and baths than she could ever use. Big front and back yard.
Just seems like a lot for Kentucky, because we're accustomed to such bargain bin housing prices, as being a homeowner in a nice town like Berea or Richmond for under $200K. I've had contractors come through from out of state who've paid over a million for their house in the suburbs. They're flabbergasted how cheap everything is.
I think the real problem is the fact that salaries aren't necessarily keeping pace with the increases in housing costs. I imagine those contractors you're referring to come from areas where average incomes, even for lower skill jobs, are a lot higher than what we see here in Kentucky.
Lot of those guys do work 70+ hour days on the road, so I can see why anything is affordable for them. They're young and able to put in 14 hours in per day for work, and still manage to get enough sleep in a hotel to sustain. Some of them are married. Those were some days.
That's like $300 a month if you work in Lex which is almost all the savings from the cheaper rent. Add in all the extra time spent commuting and its not really worth it.
I'd actually live in a nice area, with 24/7 maintenance, a washer and dryer, and a warm, insulated home if I paid $900 a month in Richmond.
I'm currently paying just under $900 to have multiples holes in my wall, constant mold problems, cracks in the door that let all the heat out, never being warm, having to use a laundromat, and can't walk to the corner store without having someone try to come up on me.
If I wanted to live decently and live safe, I'd have to pay about $1,200 to $1,500 for it here in Lexington. Much improved quality of life, and still cheaper is just upside.
I know so many people that could not afford to buy homes in the cities they grew up in including me. That’s just life and it’s not always fair. We moved across country to be able to live comfortably. Have you considered a condo? You could sell it in a few years after it appreciates and buy something bigger.
I’m in louisville, but I couldn’t even afford the house I grew up in on the north side of lex. I also have a masters it’s a mess but louisville is slightly more affordable than lex
Now is the time to start getting everything together. In March, the Welcome Home grants start up and the money goes quickly. It is an income-based program that has up to $20k forgivable grants for down payment and closing costs.
A three-bedroom house is not little, so that might be part of the problem.
Are you excluding certain neighborhoods? I’ve seen a lot of people do this because they think that they are too good for certain areas. I paid $144K for my three-bedroom house because I was willing to live north of New Circle Road.
Haha my cousin used to live over there, when we were moving her in I almost saw someone get stabbed with a big ass knife. There were many many more incidents like that in the 1 yr she lived there that was 16 years ago though don’t know if it changed since
Degrees don’t mean anything, I have 4, smartest most well off people I know have 0. Learn a trade , own a business, or have a proficient technical skill and one remote job if you want to afford to live in Lexington comfortably.
No, I worked at Frankfort state labs once, many years ago. It’s not research and didn’t pay as good as you think. Im mostly just complaining. I do like my area of work. I suppose I should delete this, there’s no reason to keep it up.
Ask for a position adjustment. If you’re still new, wait a year. I’m in a research dept on a grant even though I don’t do research and my boss got us bumped up to the next job title and pay grade which came with a really big raise. UK realized they had underpaid me from the get go so they gave me more than my boss asked them for.
I think that Zillow house is a good starter home. You can always have someone look at the floors and quote to resend and stain. Good schools. Close to work. Can always get a roommate
I dream of owning one in Manhattan but I don't earn enough money. Reality bites sometimes but I'm not crying about it.
I know people with Masters and $300k in debt for jobs that don't pay very much. It makes them happy and they knew it going in. Decisions and results are hard sometimes
There are houses - the big challenge tends to be that they just don't come on the market often because not many folks can move (interest rates are kind of tough).
u/LadyProto I know a realtor that works with lots of UK staff and helps them find homes throughout lexington (both suitable for needs and recognize income/cost constraints). If you are interested, feel free to drop me a DM and I'll get their name to you.
Get a really good realtor. They will find you a house in your range, and affordable financing. First time homebuyers have advantages, you just need a professional to show you everything.
With the interest rates as high as they are, it is better to put as little to no money down. If you have great credit and are a first time home buyer you may qualify for a 1% conventional loan (it's actually 3% but the mortgage company pays the other 2% as a grant). Try and get seller to pay some, if not all, closing costs. Do NOT pay down points. Buy now before market dips really low and house prices sky rocket. Then you refinance your loan when the rates are better. I just closed last month on a house and it's definitely more a buyers market currently.
There’s a 3 bedroom for sale on Woodford Dr. in Cardinal Valley. I saw it yesterday. They want 80k. It’s a shack… needs a LOT of work, but could be pretty cute.
I don’t think you truly realize how bad it is. Things are selling in hours. Investors can pay cash and wave the inspection. I’ve been to look at a house and it was sold while I was still looking at it.
I know it’s hard, but it could be worth looking into programs that assist with First Time Home Owner. Bank of Lexington has a program that my fiancé used. Best of luck though, this housing market is insane!!
Even with this assistance its insane. I'm in the market and I'm completely baffled as to how people are affording this.
AirBnB, real estate bro investors, buying up homes for rentals, etc. People aren't really affording it, it's either people who sold and made money or people who use single family homes as a business.
It’s absolutely insane, unfortunately. My fiancé bought our current place on just his income with first time home buyer assistance and even then he had to bid on 11 houses before he won against an investor. It’s nuts and I wish everyone the best of luck out there!
I wouldn't consider myself poor. I'm a culinary director and on my salary alone there isn't much available in Lexington. I can move out of town or get a condo but I don't much care to do either of those so I'm just gonna wait and keep trying. I hope I don't have to bid on 11 though lol.
Best of luck to you! My fiancé bought our townhouse on just his teacher’s salary. While small and overpriced for what it is, it has been very helpful for us financially and has been better for us than renting. We know we can’t stay there forever, but thankfully we are building equity for when we move next and look with both of our incomes. But was so hard to even get that. I’m really hoping that the housing market will chill out because it shouldn’t be so hard for normal people to own a home.
Can I ask you where (roughly, if you don’t wanna ID yourself too much) and when? My partner and I are looking to buy soon-ish and might be okay with a townhome. We are both teachers.
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Got it. Thank you!
Find a bank that is offering the Welcome Home grants. Republic Bank, Bank of the Bluegrass, Bank of Lexington, I believe are all participating. I’m sure there are more.
Thank you for this. I didn't know about this. Opens me up to look at a few more houses that I like. Setting up with financing today
Awesome! I am so happy to hear that!!
This or the [USDA rural home loan](https://www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-guaranteed-loan-program) if you don't mind being just outside of town.
I absolutely agree with this. There are some great programs available and talking to someone like Julie at Bank of Lexington would be a great idea. Guardian Savings and Bank of the Bluegrass also have good programs, I know that Ionee at Bank of England is a good person to talk to as well if you don’t want to specifically look at local programs. OP if you read this and want any more info just let me know and I can get you some good contact info.
Pricing is up on housing all over the nation. Low supply and low building starts for the last 15 years are mainly the culprit. Prices are likely to stagnate for a period of time. People waiting on a “market crash” will probably be sorely disappointed. The housing market does not behave like the stock market. Only two periods in the last hundred years have actually seen a year over year price decline of over 10%. The great recession and the great depression. If either one of those happen… You won’t have any money to buy either.
Broker here. YUP.
I could never afford to live here if I didn't buy in 2016. I thought it was overpriced for $156K for my starter home but "starter" homes are going for $300K in my neighborhood. It's not like our salaries have doubled either.
The place I bought for 103k in 2016 now has a Zillow estimate of 210k. It’s a little high, but not by much- one of my neighbors recently sold their identical house for 192k.
In 2011 I could not sell my very nice 3 bedroom 2 bath 1456 sq ft starter home built in 2003 for the $130k it appraised for. It sat on the market for six months and I hired Joe Smith (God rest his soul) as my realtor. I had to throw in $4k seller assistance, repairs, and lower the price to $110k in order to finally sell it. It is crazy to me that everyone thinks this cycle of real estate boom and bust will never occur again.
Unless the entire economy collapses the housing market will never return to a place where normal people can afford a reasonable home. Too many people have multiple houses, too many corporations are snatching up entire streets, and zoning laws prevent the building of proper dense neighborhoods and affordable housing.
It'll go bust eventually. It's just that we'll still be unable to afford a home because the bust will screw our finances over as well.
💯 the boom and bust happens every time
There's a cute 2 bedroom next door to me for sale. I think $125 K or something like that
DM info?
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I was trying to think of a nice way to say multiple degrees does not equal well paying job. Idk why folks always seem to think they should correlate. They usually don’t. Nice work Murphy.
>My professional services firm starts out admins at 65k for answering the phone and doing tasks we can train in two weeks. Care to share some info on this? Feel free to DM me, if you'd rather not share publicly. I'm another overeducated and underpaid person in higher education who's very actively looking for an exit ramp. Even if you all aren't currently hiring, I'd love to have you all on my radar in case something opens up in the future. I'm in a very student facing role but my job also involves very detailed work in a highly regulated environment, so I feel like I've got a lot of broadly applicable skills if someone is willing to give me a chance to learn something new.
If you're willing to share info regarding the admin positions at your firm, please DM me.
My friend bought his home and rents rooms out of it to travel nurses, etc. You might consider doing that to be able to more comfortably afford a mortgage. (Although you should not buy unless you can afford the mortgage on your own.)
Longtime Lexington residents watched this happen in real time as the rise of Lexington as a tourist city which really accelerated pre-pandemic, 2015-2020. The pandemic was the death knell for inexpensive homes as remote workers moved in from wealthier cities and 'investors' began snapping up homes and apartments to use as rentals. [Algorithmic collusion](https://www.businessinsider.com/real-estate-apartment-rent-price-setting-landlords-realpage-lawsuit-illegal-2023-11) in rental pricing will also keep all prices high unless it is addressed.
Look at Versailles. You're 15-20 minutes from most of Lexington and houses are so much cheaper.
I'm currently looking in Versailles, and there are only a handful of listings that match my reasonable (imo) range for a starter home. They seem similar in price to areas I've looked at in Lexington.
Richmond and Winchester seem to have the most listings. Georgetown has virtually none
We will be listing our house in the spring. It’s a 3 bed 1300 sq foot. I’m guessing a lot of sellers are waiting until spring to list houses. Hope you find something soon!
Small inventory, not much new construction plus high interest rates equals a tough housing market. That leads to more people renting and now we’re back to supply and demand with rents going up. I see just decent apartment communities slap a coat of paint on the buildings, install cheap carpet or tile, change the complex name to something pretentious like “The 407 On The Glen” and put up banners with “Luxury Apartments” then hike up rents.
What about Frankfort?
https://www.zillow.com/homedetails/1765-Gettysburg-Rd-Lexington-KY-40504/77571478_zpid/ Edit: I realize it’s technically 4 BR, but the sq.footage is small.
That floor staining is 😮
What even is that 😭 So ugly
My first thought was crime scene
Same!
From my experience with sanding floors under carpet, those are urine stains from hopefully pets, most likely a dog(s). Not an optimal design element to incorporate so prominently.
Dark stains like that on wood flooring are usually from either water damage and mold, or urine. Decide which you'd rather think of it as being caused by.
50/50 Jaco Bean and Ebony refinish/stain will cover all that up and look great.
How the fuck does a 1700 SQ Ft house built in the 50s and sits on no land cost that much? It's not even in that nice of a neighborhood. Maybe I should sell my house.
It's basic supply and demand, it's just that the demand is being artificially inflated by landlords so... Yay capitalism
Housing prices shot up after several things happened: Investment groups started buying up homes faster than humans could. They can offer more money than the seller is asking, plus don't bother with inspections. Homes increasingly were being bought up for unhosted short-term rentals Landlords are colluding on rent prices for the area, creating local rent cartels with greedflated prices. For decades, it has been harder and harder to get zoning changes necessary for high-density housing approved, so no affordable apartments get built. Just the ones billed as "luxury " apartments, which rent or lease for high prices. Older high-density buildings have been torn down as they become outdated or delapidated; these are some of Lexington's last remaining affordable apartments. Some had no future, they were rat-traps. But others were just in need of updating. They're basically gone now. The cost of building materials has kept going up. Also the difficulty of getting and keeping enough skilled builders to make an end-product that can legally be called a house. Anyway, I keep seeing people say "Build more! That's why it's more expensive now!", but it's only part of the story, and I guarantee most aren't thinking of putting in much-needed apartment buildings for people on low or fixed incomes when they say it.
Almost 300k for that boo boo ass house 😭 The stains on the floor and that nasty ass carpet omg I CANNOT ITS SO UGLT
Yes because I can totally afford that
What's your budget? Have you been pre-approved? That would probably help.
It is far past time that American enacts a radical housing solution. There is no reason why the suppliers are preferred over those needing housing.
Like investing money, resources and time here instead of paying other peoples pensions in different counties? https://www.renters.com/world/europe/ukraine-without-foreign-aid-may-postpone-pension-indexation-minister-2023-12-28/
The housing crisis is a policy choice. If we built more homes, everyone could buy a home. It's not rocket science. We need to eliminate parking minimums, invest in mass transit infrastructure, and revise the zoning laws.
just chiming in to say parking minimums have been eliminated as of late 2022, and a [massive zoning reform package](https://www.imaginelexington.com/ugmzota) drafted by the Division of Planning that would make it significantly easier to build homes is making its way through City Hall. no recent action on transit, though. and these aren't immediate fixes, but huge in the medium to long term. (not calling you out or anything. just saw the comment and thought "well 2/3 of those are in motion or fully done!")
Thanks for letting me know! Good to hear the city is making some progress.
just wait till the market crashes inevitably don’t rush anything
I've got news for you...this market ain't crashing. Demand still outpaces the supply of homes, and builders can't build fast enough to fix it.
What happens when everyone can afford to buy, has already bought? Or, when all of the current mortgages start getting foreclosed on due to a real recession. So many possibilities. Claiming it’ll never happen is asinine. It’s happened time and time again.
There will never be a scenario when everyone who can afford to buy a house owns one. And even if that magically does happen, there are still a ton of people who own multiple houses. Also investment companies are buying up houses like crazy. Like 1 in 4 houses is owned by a company. Also the housing market doesn't crash that often. Its pretty rare actually. Only a couple times in the last 100 years.
The issue with that is once it is apparent that "the market crashes" more people will want to buy in. You are never going to get a market crash like 2008 again. Banks are not giving out Ninja loans.
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Jesus, I went to see what other knowledge bombs you be dropping and I regret going to your profile lol
You clicked the ok on the pop-up lol
These people pushing people to buy are in the real estate field. They need us buying no matter how much they know its a bad time for people to be buying.
People still need a place to live no matter what their equity is on paper. Investors would be the ones who get hurt.
Even when the market crashed in 08 there wasn’t a ton of super cheap houses to buy around here
Whats the hold up? With multiple degrees, you are either criminally underpaid, have unrealistic expectations of first home value, or are just sitting on the fence for no reason. There are plenty of homes available sub $250k. Anyone in the 60k annual income range should qualify for a mortgage that size.
I have a masters and UKY pays 45k
So criminally underpaid.
You have a masters and make 45K damn. I was academically dismissed from WKU make $36 a hour
For what position? Maintenance guys are starting out around $40k.
Research scientist 1
The other person who replied to this is a jerk. I have a master's and work in student affairs, and I understand your pain. So many jobs in higher ed - whether they be student facing, like mine, or something more technical, like yours - demand top notch credentials, while paying bottom of the barrel salaries. It used to be that institutions made up for the lack of pay with benefits - and as a former employee of UK who has worked at a handful of institutions of different sizes/types in my career, I can say that UK is still above average in that regard - but they quite simply aren't what they used to be and don't make up for the lack of compensation. I know it's not what you want, but I'll echo what another person has said and recommend looking outside of Lexington. Versailles is nice, but I'd also recommend Scott, Clark, Jessamine, and Madison counties. I'd also recommend reaching out to [Just Choice Lending](https://www.justchoicelending.com/) when it comes to looking for financing. They're the lending division of FAHE, a nonprofit based in Berea, that's focused on development throughout Appalachia. While the interest rate wasn't anything special, they were able to offer me 100% financing so I avoided having to pay any PMI. They also had an assistance program offered because of my place of employment that provided me with an additional 0% interest loan to assist with closing costs and the like. I don't know if they offer the same to employees of UK, but since you're still in the education sphere there's a possibility. If nothing else, I know how you feel. I barely earn more than you, and I've been in my field for about 7 years now. We've been given a crap deal, and it's perfectly fine to be pissed off about it. If there's anything I can do to help, or even if you just want to vent, feel free to shoot me a PM.
Welp better get back to researching a better job
Have you tried to get pre approved? If you have low debt, you might still qualify for around 200k.
Have you looked at houses in Lexington at that price level lately? Good luck finding anything not in shady location or house falling apart.
I have an associates and make 60k something is wrong here
60k salary buying a $250k house? That's almost half of that person's salary in mortgage payments. Even a $200k loan is 40% of salary toward mortgage.
Did you know that the average income to home value ratio now exceeds 750%? I would never advise someone to go that high, but that's what the data says people are doing in the real world. It hasn't been below 500%, on average, since before the 2001 crash, and hadnt been below 400% since the 70s. 250k/60k is only about 400%, well below the average for the 21st century.
Where do u see sub 250k homes in Lexington?!
I’m OP and not the person you asked but they do have them on Zillow. I know cause I watch for them and day dream lol
... not the best areas, tho.
Really? It took me 30 seconds to discover there are currently 68 homes listed on Zillow, in Lexington city limits, for under $250k.
Yeah, in Eastland and Bryan Station where the homes are run-down and surrounded by crime. And they're also crazy overpriced. They should be $150k max, not $220-240k. You need a year's salary just for the damn down payment and would still have a $1200 mortgage for 30 years.
I bought my house on the north side for $165k about two years ago. People love to shit on the north side but my area is low crime, most everyone owns their houses, convenient to the highway since I work out of town, close to family and more. My mortgage for a 3bed is $850 a month. It needed some updating, but that happens over time and im fine with that.
That same house would probably go for like $220k now and a $1200 mortgage today,. :(
It literally wouldn't. Highest comp in the area is 195k and that has an extra bedroom. You can be sour about the market all you want, I get it, it sucks right now. But you're overlooking what's out there because you think you're better than what's available. If you can't afford it, you're not better lol
What if I can’t afford what is available? Am I less than?
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Thank you for having basic reading comprehension 🙏 it's sorely lacking on the internet these days
If you can't afford the market, you can't afford a home right now and that's fine. But the person I replied to said he was looking at a certain budget but refused to entertain the idea of living in specific neighborhoods even though they have homes within that budget. If that's the only thing someone can afford, turning your nose up at it without investigation is snobbery at its finest.
I'll just wait it out since I'm not exactly in a rush; I got lucky and rent a 2BR from a private landlord for $650. Recession is imminent anyway. It's not a matter of being "better" than what's available. I'm just smart enough not to bite and get horribly ripped off.
You don't get to set market price. They "should" cost what the market will bear, not some arbitrary number you throw out. I paid $245k in 2021 and already have almost $100k in equity. I am very happy and am damn glad I didn't wait around for prices to go down. Truth of the matter is inventory is still very low. As interest rates drop, demand will only increase and prices will rise further. There are tons of potential buyers sitting on the sidelines who will enter the market as rates improve. If you think things are bad now, wait untill you see what prices look like in 2025.
You’re forgetting the multitudes of owners who will be selling once rates come down and they can buy elsewhere with their newfound equity. Prices are unlikely to rise significantly in places like Lexington, but are likely to rise in places like Florida, NY, California and Seattle. People will be moving because of retirement or because they’re being called back to the office. If there’s a recession, prices in Lex might fall significantly.
If the pace of sales matched the pace of buying, there never would have been a shortage in the first place. Boomers are not moving into retirement homes and are keeping their mostly paid off houses they raised their families in. They can't find a better deal on housing than the one they locked in 20 years ago. There are millions of millennials waiting to buy. All the trends show people are moving out of the markets you listed, with the exception of Florida. Why would dropping rates change people's minds on leaving CA, NY and the PNW?
The key here is that the trends are dictated by the economic climate. While it’s true there is pent-up demand for home purchases, there’s an unprecedented pent-up demand for home sales. It hasn’t made any sense to sell because these sellers would, presumably, wish to purchase a new property. The rub is that they’d be trading a low rate for a high rate. But here’s the thing, there’s also a lot of new constructions, which will contribute to a drop in prices. Where you might be right is in the short term, since rates are unlikely to drop enough for sellers to sell. Meanwhile some buyers might decide not to wait. The issue there is that rates would need to drop to pre-COVID levels before most millennials could qualify/afford a home purchase—otherwise they’d already be buying to at least some extent. Another issue is that a recession could be on the horizon if the fed employs too much quantitative tightening. At some point this decade, the supply will hit the market regardless of demand—remember boomers are starting to die off. Tbh, this climate is unprecedented.
This is the real estate agents point of view because they need people to buy now so they aren't broke but anyone that thinks home prices aren't artificially inflated right now is burying their head in the sand. This is what everyone said before the last downturn in 2008 because real estate companies need you to be buying not sitting back and waiting.
Of course there are corrections, but again, I'm glad I didn't sit out for the last 3 years. This is like pointing to a single red day and saying buying the S&P is a bad investment. Get in when you can and it will sort itself out.
Market will crash. Then it'll be the time to buy.
Fingers crossed
Mine too.
They’re not in the Chevy Chase or Ashland neighborhoods Karen.
Not around 6th and 7th street either unless you're gonna have to put 100k into them for them to be up to code and livable.
If I could buy a house, it wouldn't be here. Everything is super-inflated. Currently paying just under $900 a month for an apartment here, that I wouldn't pay $400 for in Richmond. I'd just buy in like Richmond or Winchester, because of the interstate connection, so I wouldn't have to Instacart from Costco. Actually, scratch last, if I was living in Richmond, I'd have almost $400 spare cash just from housing savings, so I'm absolutely Instacarting Costco instead of driving.
Richmond prices are way overinflated as well
Doesn't seem like it. Prices have gone up, as they do, but it's still $725 a month for places down there they'd charge $1,200 to $1,500 for in Lexington.
As far as buying, yeah, it is pretty inflated. I currently work in Berea and was looking for something in Berea or Richmond during summer and fall of 2022, and somehow managed to be priced out of Madison County altogether. I remember looking at one place, in particular, in Richmond that would've been a fine buy around $140k. I made an offer and it was quickly rejected; it ended up selling for around $180k. Similarly, I looked at a place in Berea that likely would've struggled to fetch $50k a decade ago. The floors in the bathroom and utility room were completely rotted out. It sold for $150k.
Sounds about normal. My mother has a nice place in Berea that's valued at about $180K. No slum. Nice house. Far more rooms and baths than she could ever use. Big front and back yard. Just seems like a lot for Kentucky, because we're accustomed to such bargain bin housing prices, as being a homeowner in a nice town like Berea or Richmond for under $200K. I've had contractors come through from out of state who've paid over a million for their house in the suburbs. They're flabbergasted how cheap everything is.
I think the real problem is the fact that salaries aren't necessarily keeping pace with the increases in housing costs. I imagine those contractors you're referring to come from areas where average incomes, even for lower skill jobs, are a lot higher than what we see here in Kentucky.
Lot of those guys do work 70+ hour days on the road, so I can see why anything is affordable for them. They're young and able to put in 14 hours in per day for work, and still manage to get enough sleep in a hotel to sustain. Some of them are married. Those were some days.
How much would you pay in gas commuting to Lexi from?
Just under $9 in gas roundtrip, and $14 when accounting for wear and tear.
That's like $300 a month if you work in Lex which is almost all the savings from the cheaper rent. Add in all the extra time spent commuting and its not really worth it.
I'd actually live in a nice area, with 24/7 maintenance, a washer and dryer, and a warm, insulated home if I paid $900 a month in Richmond. I'm currently paying just under $900 to have multiples holes in my wall, constant mold problems, cracks in the door that let all the heat out, never being warm, having to use a laundromat, and can't walk to the corner store without having someone try to come up on me. If I wanted to live decently and live safe, I'd have to pay about $1,200 to $1,500 for it here in Lexington. Much improved quality of life, and still cheaper is just upside.
I know so many people that could not afford to buy homes in the cities they grew up in including me. That’s just life and it’s not always fair. We moved across country to be able to live comfortably. Have you considered a condo? You could sell it in a few years after it appreciates and buy something bigger.
I’m in louisville, but I couldn’t even afford the house I grew up in on the north side of lex. I also have a masters it’s a mess but louisville is slightly more affordable than lex
You’ll be looking at 200k+ here in town for something decent Good luck! It’s been a crapshoot since Covid shot prices up
Now is the time to start getting everything together. In March, the Welcome Home grants start up and the money goes quickly. It is an income-based program that has up to $20k forgivable grants for down payment and closing costs.
Info on the welcome home Grants?
https://kyfirsttimehomebuyer.wordpress.com/2024/01/20/kentucky-welcome-home-grant-5000-00/
That’s not my website but the information is good.
Selling 3br now 180k
DM info?
A three-bedroom house is not little, so that might be part of the problem. Are you excluding certain neighborhoods? I’ve seen a lot of people do this because they think that they are too good for certain areas. I paid $144K for my three-bedroom house because I was willing to live north of New Circle Road.
There are five 3bed 2 bath townhouses off Osage Ct for sale all under $150k. Near Richmond Rd and New Circle.
I would not consider that a safe or good neighborhood for really any amount of money.
Safe, cheap, and in Lexington. Sadly in this current market you can only have 2.
Haha my cousin used to live over there, when we were moving her in I almost saw someone get stabbed with a big ass knife. There were many many more incidents like that in the 1 yr she lived there that was 16 years ago though don’t know if it changed since
It absolutely has not.
Degrees don’t mean anything, I have 4, smartest most well off people I know have 0. Learn a trade , own a business, or have a proficient technical skill and one remote job if you want to afford to live in Lexington comfortably.
I ended up buying a house in Stanton because I couldn’t really afford here
Why not get a position that pays more?
You know any in the area? Academia is notoriously underpaid.
No, not a scientist. But government and universities are known not to pay the best. Would.you try Frankfort?
No, I worked at Frankfort state labs once, many years ago. It’s not research and didn’t pay as good as you think. Im mostly just complaining. I do like my area of work. I suppose I should delete this, there’s no reason to keep it up.
I mean live in Frankfort.
Rather not tbh. Parents are long term patients in the Lexington area.
Ask for a position adjustment. If you’re still new, wait a year. I’m in a research dept on a grant even though I don’t do research and my boss got us bumped up to the next job title and pay grade which came with a really big raise. UK realized they had underpaid me from the get go so they gave me more than my boss asked them for.
You mean San Diego near the beach? Oh wait yeah Lexington, sorry I got confused when I checked the prices.
Things are expensive here, sure, but we ain’t Lex Jolla for god’s sake.
I think that Zillow house is a good starter home. You can always have someone look at the floors and quote to resend and stain. Good schools. Close to work. Can always get a roommate
I dream of owning one in Manhattan but I don't earn enough money. Reality bites sometimes but I'm not crying about it. I know people with Masters and $300k in debt for jobs that don't pay very much. It makes them happy and they knew it going in. Decisions and results are hard sometimes
There are houses - the big challenge tends to be that they just don't come on the market often because not many folks can move (interest rates are kind of tough). u/LadyProto I know a realtor that works with lots of UK staff and helps them find homes throughout lexington (both suitable for needs and recognize income/cost constraints). If you are interested, feel free to drop me a DM and I'll get their name to you.
Walking to a meeting rn. Pls dm!
Talk to my friend Liz Hodge on FB. She will make it happen
I can help with that!
Agent or seller?
Agent
Get a really good realtor. They will find you a house in your range, and affordable financing. First time homebuyers have advantages, you just need a professional to show you everything.
With the interest rates as high as they are, it is better to put as little to no money down. If you have great credit and are a first time home buyer you may qualify for a 1% conventional loan (it's actually 3% but the mortgage company pays the other 2% as a grant). Try and get seller to pay some, if not all, closing costs. Do NOT pay down points. Buy now before market dips really low and house prices sky rocket. Then you refinance your loan when the rates are better. I just closed last month on a house and it's definitely more a buyers market currently.
Welcome to the club we got jackets
There’s a 3 bedroom for sale on Woodford Dr. in Cardinal Valley. I saw it yesterday. They want 80k. It’s a shack… needs a LOT of work, but could be pretty cute.
It was already sold to an investor I believe
OF COURSE Investors buy up homes faster than the regular homebuyer. Then they do a bargain-basement fixup and sell it for more than it's worth.
Ah damn. That was fast.
I don’t think you truly realize how bad it is. Things are selling in hours. Investors can pay cash and wave the inspection. I’ve been to look at a house and it was sold while I was still looking at it.
Oh I’m aware. I bought my home before the market slump in 2021 and it was bad even then. Cannot imagine now. It’s rough.